80% of Small Business Owners Optimistic, Still Face Risks

Small Business Insurance

Survey data published by the National Small Business Association (NSBA) appears to reflect a growing optimism among small business owners, tempered by a few notable concerns.

As reported by AP, “[e]ighty percent said they were very or somewhat confident about the future of their businesses, up from 72 percent.” A further two-third expected to see a revenue increase in the coming year. This growing optimism is tempered by survey data published in a different NSBA survey which indicates many businesses are still concerned over regulatory costs that average around $12,000 annually for small businesses.

Despite a few concerns related to the added cost for conforming to federal, state and local regulations, businesses appear to be thriving, leaving many individuals considering whether now is the right time to acquire a small business. Despite growing optimism for growth, many common risks associated with owning, operating, or running a small business remain.

Writing in the Harvard Business Review, business professors Richard S. Ruback and Royce Yudkoff explain that there really is no right or wrong time to acquire and run a small business. What matters more, the pair writes, is whether it makes sense to you at the time you purchase it.

Still, those purchases may have to be tempered with some caution. Buying an existing small business, even in better economic times, often means acquiring a business with physical assets. This can include a storefront, a place of operations, and valuable equipment required to operate the business. From the start, those looking to acquire and run a small business may need to consider third-party liability coverage and property coverage.

While this may often go hand-in-hand with a lease contract, a purchase of a Business Owner’s Policy may be beneficial. In truth, the eagerness to purchase a business in today’s market to help reap the benefits of an economic upswing should still come with some caution regarding what liability concerns those businesses absorb from the start.

Discussions — One Response

  • finding financial advisor April 11, 2017 on 4:46 pm

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